Market Trends of Latin America Card-based Access Control Industry
Smart Card (Contact and Contactless) Segment Expected to Witness High Growth
- Smart cards are designed with the intention of being difficult to replicate. They offer features such as personal identification, authentication, data storage, and application processing and can be integrated with other card technologies to enhance security measures.
- The use of smart cards has increased in the past few years, and the trend is expected to continue, with contactless smart cards gradually replacing older technology proximity cards. Smart cards have had far more use cases due to their reduction in costs while deploying and growing ease of technology use cases. Human physical intervention has been eliminated in large amounts in the operations of these access control technologies.
- The demand for smart cards in Latin America is increasing as customers are actively looking for total security solutions and flexible door environments using convenient digital and mobile technology. This is possible due to various advancements and usage in authentication methods like RFIDs.
- Reducing and eliminating theft is a major benefit considered when replacing traditional locks and keys with smart cards. Smart card access control systems tend to be much more reliable and durable than mechanical locks and metal keys.
- The rise in criminal incidents in the region is expected to drive up the need for smart cards between 2024 and 2029. Data from Ministerio Público (Paraguay) revealed that by December 2023, there were approximately 416 reported cases of robbery and more than 1,065 cases of aggravated robbery in Paraguay. May stood out as the month with the highest number of aggravated and common robbery cases, with 1,380 and 596 incidents, respectively.
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Brazil is Expected to Register the Fastest Growth
- The rising need for access control in government, industrial, commercial, residential establishments, and transportation hubs is set to drive deeper integration of card-based access control systems across Brazil. This integration is expected to enhance security measures, improve monitoring capabilities, and provide efficiency to the organizations.
- Key card or key fob systems serve as vital access control tools, aiding IT and security teams in safeguarding their facilities. They enable access to offices and buildings while also thwarting security breaches and unauthorized entries.
- The rising need for physical security in establishments has driven a notable uptick in the adoption of card-based access control systems by businesses. This upswing in the market directly mirrors the escalating demand for heightened security and protection in various end-user industries, including industrial, healthcare, and commercial.
- The expanding construction activities in the country are anticipated to create more demand for the card-based access control market. According to the Brazilian Institute of Geography and Statistics, the gross domestic product (GDP) of the construction industry in Brazil was significantly higher in 2023 than in the previous year.
- Similarly, according to the statistics provided by Cushman & Wakefield, in 2023, Sao Paulo spearheaded Brazil's industrial and logistics real estate construction, claiming over two-thirds of the nation's projects. Specifically, São Paulo saw nearly 1.1 million square meters of space under construction, highlighting its pivotal role in the country's real estate development.
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